Finance

Xi Jinping's Unexpected Critique of Local Officials on EV and AI Overdrive

2025-07-18

Author: Sarah

In a surprising move that shook the political landscape, President Xi Jinping has publicly questioned local governments in China about their relentless push into emerging sectors such as artificial intelligence and electric vehicles. This unusual criticism comes amid rising economic concerns that have gripped the nation.

During a recent meeting focused on urban development in Beijing, Xi highlighted his frustration with local officials for continually chasing the same hot industries. "When it comes to launching new projects, it’s always the same few things: artificial intelligence, computing power, new-energy vehicles," he remarked, underscoring a growing sentiment that this behavior is detrimental to real progress.

Xi's comments are particularly significant given the backdrop of deflating domestic demand and escalating trade tensions with global partners. As local governments scramble to stake their claims in high-tech realms, there is a burgeoning concern that this uniform approach might stifle innovation and economic recovery.

This call to rethink strategy could mark a turning point for local governance approaches across the country, urging officials to diversify their focus and foster unique local advantages rather than mirroring each other in overhyped sectors. As China's economy adapts to new realities, all eyes will be on how these critiques shape future policy directions.